Analysis of Value Chain and Competitiveness of Sesame Crop in Gadarif State- Sudan

Abstract

The main objective of this study is to analyze the sesame crop value chain and its competitiveness in Gadarif State in order to identify the challenges and opportunities throughout the value chain stages. Also, to determine the contributions of all actors in the value added and profits of sesame, as well as, to estimate the socioeconomic factors influencing producers’ profitability. Both primary and secondary data were used in the study. Multistage random sampling technique and purposive sample procedure were used to collect the primary data for the season 2019/2020 using questionnaires. The total sample size was 230 participants (150 farmers, 30 wholesalers, 15 traditional processors, 15 exporters, 15 oil retailers and 5 cake traders). Secondary data was collected from different relevant sources of the study. In addition to linear regression and SWOT analysis, descriptive, functional, and quantitative analyses were used to analyze the data. Descriptive analysis showed that the key actors of the value chain in the study area included input suppliers, producers (farmers), wholesalers, processors, exporters, retail traders. The majority of them within the economic active age (20-60 years) and they had primary or secondary education. Functional analysis revealed that sesame has been traded in big quantities through different activities of the value chain. Quantitative analysis indicated that farmers added largest share of value and got highest gross marketing margins. While the exporters and traders received highest share of profits. Most of the value added in the value chain was due to high transportation cost and cost of losses. The coefficient of private profitability (CPP) indicated the profitability of sesame in all value chain stages. However, the return from investment of one SDG to the farmer was found to be very low. This implies low farmer’s profitability. Export parity price at farm gate level revealed that exporting 10% with the official exchange rate was not rewarding for the exporters. Regarding linear regression analysis the results revealed that Producer's profitability was affected positively by productivity, selling price and selling directly after harvest and negatively by harvesting cost and the experience of the farmers. SWOT analysis showed a lot of advantages and opportunities in the sesame value chain stages such as presence of good climate, labor employment, existence of local and global markets and high demand for sesame oil and cake. On the other hand, there were some challenges an weaknesses such as absence of improved seeds, high infection by pests and diseases, presence of brokers, high transportation cost. The study suggests some recommendations as: use of improved high yielding and disease resistant varieties, raise farmers’ skills, improve the efficiency of marketing system, use of effective pricing policies, strengthen export promotion and encourage investments in the sesame oil manufacturing.